As part of their reform process, the Chinese Government aimed at tackling its population problem, developing infrastructure, providing investor-friendly policies and generally promoting the country as the latest destination for trade. Today, this gigantic dragon has succeeded to lure MNCs towards it. India's Sundram Fasteners is all set to cross the Great Wall of China to tame this Chinese dragon. But what supremacy do they command? Where do their strengths lie?
Sundram Fasteners Ltd. (SFL) is the leading player in the fasteners2 segment, which understood that proactive actions would lead them. It is the largest manufacturer and exporter of HighTensile Fasteners (HTF). It is the leader in the domestic markets with 50% of the market share and exports fasteners to most of the Original Equipment Manufacturers (OEMs) in USA, Europe and the Asia Pacific. For the year 2004-05 the company is expected to cross Rs. 200 cr (US$45 mn) export in sales.
In 1966, Sundram Fasteners was established at Ambattur industrial area in the outskirts of Chennai as a small-scale industry to manufacturing nuts and bolts. Today, this company has six manufacturing units across South India (Chennai, Madurai, Pondicherry, Hosur, Hyderabad, Gummudipoondi), besides greenfield ventures in Cramlington (UK) and Zhejiang province (China). The offshore plant in Zhejiang province has made Sundram Fasteners the first engineering company in India to set up an operating base in China.
Sundram Fastener's first manufacturing facility was set up at Padi in the outskirts of Chennai with 6000 TPA capacity. The company was inclined to manufacture high tensile fasteners for OEMs. From 1966 to 1980s, the company established its presence in the domestic market. Sundram Fasteners which started with a meager turnover of Rs. 0.4 mn in 1966 grew rapidly over the years. |
